ESG Initiatives through Our Asset Management Business

The Role of Asset Management Companies as Responsible Investors

Sompo Asset Management fully endorses and has declared acceptance of the aims of Japan’s Stewardship Code, enacted in 2014 (and subsequently revised in May 2017 and March 2020), which sets forth principles for responsible institutional investors. The Company believes that stewardship activities such as constructive dialogue with investee companies and the exercising of voting rights will promote the value of investee companies and their sustainable growth, and consequently contribute to the sustainable development of society and the economy as a whole.
Since its founding, Sompo Asset Management has been systematically developing its operations, focusing on active management that aims to acquire medium- to long-term investment returns. The Company works to expand returns on investments by accurately grasping not only financial information but also other information, including ESG (Environment, Social and Governance) factors, and eliciting appropriate investment value to help clients build their assets in medium- to long-term.

Efforts to Establish a Sustainable Investment Chain

Sompo Asset Management’s mission is to maximize investment returns on the client assets it manages by investing in listed companies. When investing, the Company believes that its actions to fulfill its fiduciary duties as an asset management company should ideally also contribute to the sustainable development of the investee company and to society and economy as a whole. As an institutional investor, the Company believes it has a stewardship responsibility to play its role in achieving the investment chain that balances these two goals.
The Company has formulated and announced a Responsible Investment Policy, as a code of conduct to address our responsibilities to society.
This policy clearly states the Company’s awareness of the role expected of institutional investors by society and its expectations in investee companies. The policy also provides a roadmap detailing specific initiatives with respect to its management processes and engagement with companies to ensure its stewardship responsibilities are properly fulfilled.

Relationship between Investment Value Evaluations and ESG Factors (ESG Integration)

Sompo Asset Management constantly tracks the situation at predetermined potential investee companies, regardless of whether currently an investee company, and continuously evaluates their investment value.
In active asset management, that aims to acquire medium- to long-term investment revenue, while taking an interest in enhancement of corporate value and sustainable growth, our success depends on accurately understanding the company and appropriately evaluating the investment value. To ensure this process is appropriate, the Company has established its own unique research system in which in-house analysts perform detailed analysis of a company’s financial and non-financial information before making medium- and long-term forecasts. The Company integrates ESG factors into its management process by constantly monitoring companies’ ESG data and comprehensively evaluating such information as an investment value.

Dialogue with Companies

Sompo Asset Management expects its investee companies and potential investee companies to pursue corporate value enhancement and sustainable growth while fully utilizing the capital gained through the capital markets. The Company also expects investee companies and potential investee companies to demonstrate a management stance that not only respects the interests of shareholders but also contributes to the sound development of society and the economic system as a whole. The Company focuses on understanding companies’ added value creation and distribution process when engaging in dialogue. The Company promotes mutual awareness and constructive communication with the investee companies in an effort to solve problems by keeping corporate value enhancement and sustainable growth, both shared aims, at the core of those dialogues.
In fiscal year 2021, the Company identified approximately 700 potential investee companies and, through the research by its analysts, was able to hold 597 individual dialogues and participate in 1,773 briefings, eliciting a total of 2,370 opportunities for dialogue.

Strengthening the Internal Organization

Sompo Asset Management 's Responsible Investment Committee, chaired by the CIO and consisting of the heads of each investment division and the Compliance and Risk Management Department, is responsible for directing and supervising responsible investment in general. Under this committee, the Responsible Investment Department exists as an organization to promote responsible investment, including stewardship activities, and a full-time ESG specialist has been assigned to participate in the activities of various initiatives.
The Company will continue to actively participate in the United Nations-supported Principles for Responsible Investment (PRI) and other global related initiatives, and will utilize the knowledge gained from these initiatives in its engagement activities to solve various social issues.